Robocars - Autonomous Drive, Self-driving, Driver-less cars

If that was actually the case why are they currently designing them to deal with peds and cyclists at all?

Transition. Right now bicycles are considered a focus of a lot of city planning. It would be horribly unwise for the carmakers to server their demands right now. Pushers, afterall, looking for prospects don't tell the kids in the playground that they'll be stealing car radios, working the blvd or dealing themslves to pay their habit..

Also, in the UK aren't there deep seated laws about rights of way and stuff like that?>

Indeed. But people have been known to give up many rights they once considered "sacred" and "non-negotiable" when plucked in the right manner..

Otto Ludwig Piffl: "Is everybody in this world corrupt?"
Peripetchikoff: "I don't know everybody."